Bill · H.R. 8045· House(119-HR-8045)
Student Loan Interest Elimination Act
- Introduced
- 3/24/2026
- Last activity
- 3/24/2026 — Referred to the Committee on Education and Workforce, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Joe Courtney
- Cosponsors
- - 8 - 0
- Introduced
- In Committee
What this bill would do
The Student Loan Interest Elimination Act aims to amend the Higher Education Act of 1965 to remove interest from student loans. The bill establishes the Education Affordability Trust Fund to manage funds derived from loan repayments. It implements procedures to modify existing Federal direct loans and refinance other Federal student loans so that no interest accrues. Additionally, the act sets terms for new loans, including a 0 percent interest rate for specific loans made on or after July 1, 2026. The legislation also includes provisions for a Supplemental Federal Pell Grant Program and adjustments to annual and aggregate loan limits.
Yes· 3 of 9
Would students be better off under this?+10
The bill provides direct relief by eliminating interest on existing and future federal student loans.
Does this make college cost less?+10
The bill eliminates interest on existing and new federal student loans and creates a supplemental Pell grant program to lower costs.
Would people in their twenties and thirties be better off under this?+8
The elimination of interest on student loans provides significant financial relief to those currently in or entering higher education.
The opposite
Would people over 65 be better off under this?-2
The termination of interest-subsidized loans could reduce the overall availability of certain types of educational financial assistance.
Who it would affect, and how
Potential Positive Impacts for People
-
Elimination of Interest on Existing Loans: The Secretary would modify the terms of eligible Federal direct loans so that, starting July 1, 2026, no interest accrues on those loans (Section 102(a)(1)).
-
Refinancing of Non-Federal Loans: Borrowers with eligible non-Federal direct loans can have them refinanced into Federal Direct Consolidation Loans with no interest accruing (Section 102(b)(2)(A) and (C)).
-
Zero Interest on New Loans: For specific loans such as Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans made on or after July 1, 2026, the interest rate is set at 0 percent (Section 201).
-
Increased Loan Limits and Inflation Adjustments: The bill adjusts annual and aggregate loan limits, requiring these amounts to be increased based on the annual adjustment percentage tied to the Consumer Price Index starting July 1, 2027 (Section 203).
-
Supplemental Pell Grants: Excess funds from the Trust Fund may be used to provide additional Federal Pell Grants to students (Section 301(a)).
Potential Negative Impacts for People
-
Termination of Interest Subsidized Loans: No new Federal Direct Stafford Loans may be made after June 30, 2026 (Section 202(a)).
-
Loan Repayment Limitations: While the bill allows for various repayment plans, it notes that certain Federal Direct Consolidation Loans made under this act may be subject to specific terms regarding how they are treated under income-based repayment (Section 102(b)(3)(A) and (D)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Students+10Good For Young Adults+8Good For Low Income Households+7Good For Middle Class Households+6Good For Hispanic Americans+4Good For Seniors-2
- Education And Technology
- Improves College Affordability+10
- Social Issues And Justice
- Improves Poverty Reduction+5
- Economy And Finance
- Improves Economic Growth+3
- Governance And Ideology
- Improves Government Transparency+2
- 7/20/2026
- 1 Cosponsor added.
- 7/14/2026
- 1 Cosponsor added.
- 7/9/2026
- 1 Cosponsor added.
- 6/18/2026
- 1 Cosponsor added.
- 4/27/2026
- 1 Cosponsor added.
- 4/22/2026
- 2 Cosponsors added.
- 3/24/2026
- Referred to the Committee on Education and Workforce, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Dwight EvansDemocrat · Pennsylvania
Shomari FiguresDemocrat · Alabama
Ted LieuDemocrat · California
Mike LevinDemocrat · California
Eleanor NortonDemocrat · District of Columbia
Chellie PingreeDemocrat · Maine
Robert ScottDemocrat · Virginia
Frederica WilsonDemocrat · Florida